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Wash Trading




Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader’s market position.



The Commodity Exchange Act prohibits wash trading.


Additional Comments:

Also called round trip trading, wash sales.

Related Terms:

Risk Reversal
The term risk reversal is used in a couple of different ways in trading:In foreign-exchange trading, ...

Price to Sales
Per dollar of shareholder value, how much business does this company generate? Price to sales (P/S) ...

Sales Load
The sales fee that the buyer pays in order to acquire an asset. ...





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